Dow climbs 200 points at open as Amazon joins Microsoft in reviving AI optimism

• Amazon surged 11% on better-than-expected Q2 revenue with strong cloud performance, while Apple fell over 9% despite 22% iPhone sales growth due to disappointing services revenue
• Markets rebounded from Wednesday's 1,100-point Dow drop (worst since April 2025) caused by Fed rate policy concerns and rising Treasury yields, with the 30-year yield climbing above 5.2%
• Global markets advanced with Japan's Nikkei up 3% and European Stoxx 600 rising 0.8%, while oil prices steadied near recent highs amid Middle East tensions involving Iran

Market Summary: AI Optimism Drives Market Recovery

Key Market Movements

US markets opened strongly on Friday, July 31, 2026, with the Dow Jones climbing 227 points (+0.5%), the S&P 500 gaining 0.5%, and the Nasdaq rising 0.8%. Major indexes remained on track for weekly gains despite midweek volatility, with the Dow up 0.5%, S&P 500 up 0.4%, and Nasdaq up 0.6% for the week.

Company Performance

Amazon surged 11% following better-than-expected Q2 earnings, driven by strong cloud services performance. This followed Microsoft's positive results showing robust Azure cloud growth, collectively reviving investor confidence in AI infrastructure spending.

Apple declined over 9% despite beating Q3 revenue expectations and posting 22% iPhone sales growth. Weaker-than-expected services revenue disappointed investors.

Sector Highlights

Technology stocks, particularly semiconductors (NVDA, AMD, INTC) and AI-linked companies, rallied strongly. Asian markets advanced, with South Korea's index surging on Samsung Electronics and SK Hynix gains, while Japan's Nikkei climbed 3%. European markets also rose, with the Stoxx 600 up 0.8%.

Market Context

Markets recovered from Wednesday's sharp selloff, when the Dow fell over 1,100 points—its worst day since April 2025—after the Federal Reserve held rates steady, raising inflation concerns. The 30-year Treasury yield rose above 5.2%, near 2007 highs.

Geopolitical Factors

Oil prices remained relatively stable despite Middle East tensions, with Iran attacking US bases in Kuwait and Bahrain. WTI crude held at $83.61/barrel while Brent rose 0.4% to $89.40 as Strait of Hormuz shipments recovered.